To get a better understanding of how these different funds perform, investors should look under the hood. Hoffstein looks for security eligibility and weighting when scrutinizing the underlying ETF benchmarks.

For instance, IDV requires that components be taken from developed countries in Europe, Pacific, Asia and Canada. Securities must also meet dividend payout consistency and growth metrics, along with profitability and minimum liquidity levels. Holdings are then weighted by dividend yield.

PID only includes companies that have continually increased dividends, and holdings are weighted by dividend yields. The combination of listing requirements and dividend growth means that the majority of components are from developed countries, like the U.K. and Canada.